Fintech firm Plaid is laying off about 260 employees, adding to the recent wave of cuts from tech companies like Meta, Twitter and Coinbase.
, citing macroeconomic challenges throughout the past year.
The company currently has more than 1,250 team members in seven offices worldwide, according to the Plaid website. Plaid's platform allows users to link their bank accounts to fintech apps such as Venmo, Robinhood and Coinbase. The company has experienced steady growth since it first launched in 2013, with more than 12,000 financial institutions now supported by Plaid and more than 7,000 fintechs built on the service.
The company experienced a rapid increase in the use of its platform by both new and existing customers during the pandemic and hired aggressively to meet that consumer demand, Perret said. With slower-than-anticipated growth throughout the industry in 2022, costs outpaced Plaid's revenue growth. Perret also said in the memo the number of Plaid customers has grown about 50% in the past year, with consumers using the platform growing at rapid rates.
"Today's changes were incredibly tough, but they were also necessary," Perret said in the memo. "They will allow us to continue to operate from a position of strength so we can best support our customers and the millions of consumers we jointly serve for the long-term."
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